Ethical and Sustainable Investment
Refreshed October 2022 | CPD time: 2 Hours
As participants in financial capital markets, individuals and organisations are free to select investments on any basis they wish (subject to fiduciary responsibility in certain cases, eg, trustees to a trust’s beneficiaries). While conventional market practice dictates that investors should operate solely to maximise their returns, ethical, sustainable and responsible investors believe that moral considerations should also apply, or that short-termism is supporting damaging corporate activities. There may be variations in interpretation but, in summary, decision making for ethical, sustainable and responsible investment includes factors other than solely maximising short-term returns.
1. Introduction and Background
2. Alignment with Positive Impacts
3. Investment Screening
4. Investment Approaches
5. The Price of Conscience
6. Faith-Based Investing
7. Other Approaches
8. Conclusions
Module Test